# Contribution Margin and Contribution Margin Ratio

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Contribution Margin and Contribution Margin Ratio 1 answer below » For a recent year, McDonald%u2019s company-owned restaurants had the following sales and expenses (in millions): Sales \$16,561 Food and packaging \$ 5,586 Payroll 4,300 Occupancy (rent, depreciation, etc.) 3,767 General, selling, and administrative expenses 2,355 \$16,008 Income from operations \$ 553 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative
expenses. a. What is McDonald’s contribution margin? Round to the nearest million. (Give answer in millions of dollars.) \$ b. What is McDonald’s View complete question » For a recent year, McDonald%u2019s company-owned restaurants had the following sales and expenses (in millions): Sales \$16,561 Food and packaging \$ 5,586 Payroll 4,300 Occupancy (rent, depreciation, etc.) 3,767 General, selling, and administrative expenses 2,355 \$16,008 Income from operations \$ 553 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative
expenses. a. What is McDonald’s contribution margin? Round to the nearest million. (Give answer in millions of dollars.) \$ b. What is McDonald’s contribution margin ratio? Round to one decimal place. % c. How much would income from operations increase if same-store sales increased by \$400 million for the coming year, with no change in the
contribution margin ratio orfixed costs? (Give answer in millions of dollars, rounded to one decimal place.) \$ View less » Dec 07 2013 05:06 PM